Will Brown & Brown's Beat Streak Continue This Earnings Season?

Core Insights - Brown & Brown, Inc. (BRO) is anticipated to show growth in both revenue and earnings for the fourth quarter of 2025, with revenues expected to reach $1.64 billion, reflecting a 38.7% increase year-over-year, and earnings estimated at 89 cents per share, indicating a 3.4% rise from the previous year [1] Earnings Predictions - The Zacks model indicates a likely earnings beat for BRO, supported by a positive Earnings ESP of +7.71% and a Zacks Rank of 3 (Hold), which enhances the probability of exceeding earnings expectations [2][3] Revenue Drivers - Core commissions and fees are projected to benefit from new and renewal business, acquisitions, and favorable foreign currency translation effects [4] - Profit-sharing contingent commissions are expected to rise due to improved underwriting results, increased premium volume, and qualifying for certain profit-sharing commissions that were not applicable in the prior year [4] - Net investment income is forecasted to increase, driven by interest income from the company's follow-on common stock offering, with a consensus estimate of $30.1 million [5] - Organic revenue growth in the Retail segment is anticipated from net new business and renewals, while the Wholesale Brokerage segment is expected to see similar benefits from new business and exposure unit increases [5] Expense Outlook - Expenses are likely to rise due to higher employee compensation and benefits, increased operating costs, and higher amortization, depreciation, and interest expenses [6]